The stock market is set to open tomorrow under the shadow of President Joe Biden’s announcement that he will not seek reelection, leading to expected volatility.
Boeing is aiming to raise $19 billion as it grapples with delivery delays and labor disruptions.
This announcement of Biden’s withdrawal is likely to heighten economic uncertainty, coinciding with efforts by Democrats to rally around a new candidate, with Biden having endorsed Vice President Kamala Harris for the nomination.
Josh Thompson, CEO of Impact Health USA, remarked that an announcement from Biden could lead to a volatile and uncertain market reaction. He noted that investors typically prefer stability, and such a major political change could disrupt that stability.
In light of this uncertainty, investors may gravitate toward safe-haven assets like gold, silver, and the Swiss franc, which tend to be less sensitive to political and economic fluctuations.
Additionally, the “Trump Trade,” which has been gaining momentum after former President Donald Trump’s debate performance and his recent survival of an assassination attempt, could also see a slowdown. This term refers to market behaviors linked to the prospect of a second Trump administration. During his presidency, Trump was known for being business-friendly, benefiting sectors like healthcare, banking, cryptocurrency, oil, as well as companies like Tesla and Trump Media and Technology Group.
Raymond James Washington policy analyst Ed Mills indicated that while Biden’s exit from the race might influence the current “Trump Trade,” the firm’s electoral odds would remain at 60% for Trump compared to 40% for Biden or a Democrat candidate. He expressed that while the market may take time to reassess the political landscape, a broader market response is not anticipated.
Will Gavin contributed to this article.